By Megan Ma

Joe Hu/town crier The Neutra Cottage, left, and the Community House sit side by side on Hillview Avenue. The financial future of the Community House is currently up in the air.

A nine-year lease for the Los Altos Community Foundation’s property expires this month. The landlord, California Water Service Company has notified the non-profit foundation that it would have to pay higher rent or buy the property.

Since 1997, when the non-profit moved the Community House, originally the De Martini House, across San Antonio Road to its current location at 183 Hillview Ave., the foundation has paid $1,200 a year in rent - far below the market value, said Shawn Heffner, Cal Water director of corporate development.

In September, Heffner sent a letter to the foundation requesting a rent increase to $5,000 per month for a 10-year lease or $7,700 per month for a 30- or 40-year lease-to-buy term. The foundation’s board members have not yet discussed the issue with Cal Water, said Henry Roux, foundation secretary.

“It has some potential to change the ways things are done. The foundation is accustomed to being headquartered in that building. (But) it’s too early to say one way or another what will happen,” Roux said. He did not disclose the foundation’s financial status or if members could afford to buy the property.

Cal Water entered into the original lease with the understanding that, by this month, their tenants would raise the funds to buy the land outright. So far, foundation board members have not reached a decision, Roux said.

Heffner noted that Cal Water was “flexible” on a date for a final agreement, but also estimated that he was tentatively allotting the foundation six months to reach a decision.

Community Foundation Executive Director Roy Lave said that his board had recently appointed an ad hoc committee to discuss their options.

“It is our intent to continue to occupy the Community House,” Lave wrote to the Town Crier.

Heffner said the water district was eager for a resolution. “The original purpose of the lease was to give them time to raise funds … I’m not really sure why it’s taking so long to come to an agreement, but we’re willing to work with them.”

During the past nine years, the city has acted as a conduit between the foundation and the water district, said City Manager Phil Rose. The foundation pays no other fees, other than utilities.Since the house was moved to its current site, the city has had little involvement in the foundation’s affairs.

Adding to the complexity of the land arrangement, the foundation had a small structure, designed by famed architect Richard Neutra, moved next door to the Community House last year. Former Councilman King Lear led a fundraising campaign to relocate and restore the Neutra House in its new location. A conservative estimate for the completion of the restoration, Roux said, is December 2007.

Mayor Ron Packard said he hoped the foundation would be able to raise funds to secure its current site for the future.

“The community foundation has been a great organization that has provided many benefits to our community,” Packard said. “Hopefully this can be a rallying point for the community foundation to raise enough funds to purchase the land.”